CFR Far East

The CFR Far East market gained last week due to rising crude prices. For first-half June delivery, one European trader seemed to have sold a 23,000mt propane cargo at a high-single digit premium to June CFR Far East quotations. For second-half June delivery, one Japanese trader and one US supplier were apparently seeking 46,000mt propane cargoes. Further, one 46,000mt propane cargoes for second-half June delivery was seen to have been traded at a premium of $2-4/mt to June CFR Far East quotations. Rim Asia Index for propane and butane was at $547.25/mt and $537.25/mt as of May 13, up $13.00/mt and $23.00/mt respectively from May 7.

FOB Middle East

The June CP was expected at about $490/mt for propane and about $480/mt for butane. One Qatari gas producer was carrying out a sell tender for a 45,000mt propane cargo for Jun 19-20 loading. Sources predicted that the cargo might be awarded at a discount of about $15/mt to the June CP. Meanwhile, regarding a sell tender issued by one Kuwaiti gas producer, one Chinese petrochemical player apparently won a 44,000mt 50:50 cargo for Jun 15-16 loading at a discount of about $15/mt to the June CP.

Asia Pressurized Market

On FOB South China, some refrigerated cargo importers offered cargoes for second-half May loading at a premium in the high $30's/mt to the May CP. Nevertheless, buyers were not keen on buying at this level since FOB Malaysia cargoes seemed ample in the spot market. Regarding CFR Vietnam, buying interest was weak since LPG consumption was falling in Vietnam due to the COVID-19 outbreak.

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